bash accepts script with incorrect syntax and goes into infinite loop

[werner]

Configuration Information [Automatically generated, do not change]:
Machine: i586
OS: linux-gnu
Compiler: gcc -I/usr/src/packages/BUILD/bash-4.0 
-L/usr/src/packages/BUILD/bash-4.0/../readline-6.0
Compilation CFLAGS:  -DPROGRAM='bash' -DCONF_HOSTTYPE='i586' 
-DCONF_OSTYPE='linux-gnu' -DCONF_MACHTYPE='i586-suse-linux-gnu' 
-DCONF_VENDOR='suse' -DLOCALEDIR='/usr/share/locale' -DPACKAGE='bash' -DSHELL 
-DHAVE_CONFIG_H   -I.  -I. -I./include -I./lib   -O2 -march=i586 -mtune=i686 
-fmessage-length=0 -Wall -D_FORTIFY_SOURCE=2 -fstack-protector -funwind-tables 
-fasynchronous-unwind-tables -g -D_LARGEFILE64_SOURCE -D_FILE_OFFSET_BITS=64 
-D_GNU_SOURCE -DRECYCLES_PIDS -Wall -g -std=gnu89 -Wextra 
-Wno-unprototyped-calls -Wno-switch-enum -Wno-unused-variable 
-Wno-unused-parameter -ftree-loop-linear -pipe -fprofile-use
uname output: Linux boole 2.6.27.19-3.2-pae #1 SMP 2009-02-25 15:40:44 +0100 
i686 i686 i386 GNU/Linux
Machine Type: i586-suse-linux-gnu

Bash Version: 4.0
Patch Level: 24
Release Status: release

Description:
        The subject says it all.  Report was from an other user
        https://bugzilla.novell.com/show_bug.cgi?id=545001

Repeat-By:
        printf '%s\n%s\n' foo bar | while read NAME;
        echo NAME=$NAME
        do
            echo blah
        done